Does the Dorra field affect the relations of Saudi Arabia and Iran? (article)

Iran and its southern neighbors share many oil and gas fields; Among them is the Dorra field; The United Arab Emirates, Saudi Arabia and Iran have 5 oil fields.

In addition, Qatar and Iran share the South Pars field, which is the most important joint field for Iran.

This cooperation is represented in the oil and gas sector between Iran and its southern neighbors in these common fields.

The dispute over the Dorra / Arch field

The dispute between Kuwait and Iran over an offshore oil field has important geopolitical implications. The Dorra/Arash gas field has been the subject of a dispute between Iran, Kuwait and Saudi Arabia in recent decades.

Iran, on the one hand, and Kuwait and Saudi Arabia, on the other, constantly assert that it has the right to exploit this field. The increasing tension in Iranian-Saudi relations in recent years has exacerbated these differences.

And the Kuwaiti Minister of Oil, Economic Affairs and Investment, Saad Al-Barrak, stated, in a statement, that the Dorra / Arch gas field is a natural wealth for Kuwait and Saudi Arabia, and until the redrawing of the maritime borders, no third party has any rights in it.

It should be noted that this gas field, which is referred to in Arabic as “Al-Durra”, has been the subject of a dispute since 1960 regarding the determination of the shares of Iran and Kuwait and the approval of sovereignty over the maritime borders of these two countries.

Iran and Kuwait have been holding talks on the Dorra / Arch field since 1960. These talks are still going on. The demarcation of the border between the waters of the continental shelf of the two countries is the main source of disagreement.

Prior to the Iranian revolution in 1979, international law was used to delimit Iran’s maritime borders, and the Islamic Republic of Iran continues to abide by these regulations today.

This demarcation places about 40% of the buildings of the Dorra/Arash gas field within Iranian territory.

Nevertheless, Kuwait confirms a new boundary that includes the entire Dorra/Arish field within the buffer zone between Kuwait and Saudi Arabia, based on the seismic study conducted by Shell.

Responding to the Kuwaiti Oil Minister’s assertions, a source in the Saudi Foreign Ministry has now said that Saudi Arabia and Kuwait share ownership of the Dorra/Arash gas field and are asking Iran to start talks on the matter.

These assurances show that the claims and claims regarding this area are still being discussed, and that all concerned are trying to reach an amicable agreement.

This underscores the importance of the ongoing talks and efforts to reach a fair deal for all parties. The Kingdom of Saudi Arabia and Kuwait had previously called on Iran to enter into negotiations to demarcate the eastern borders of this joint maritime area, and confirmed their right to develop this gas field.

Earlier, the Saudi Energy Minister stated: “We will continue to develop this field. We have issued a joint public statement and encouraged Iran to sit at the negotiating table in the event of a claim for a stake in this field, because this issue is still a pending bump.”

He added, “Saudi Arabia and Kuwait are ready to work together in any negotiations, because they have common interests in these resources.”

Iranian position

Iranian media and some Iranian officials claim that the Dorra/Arash oil and gas field is one of Iran’s undeveloped strategic fields shared with the neutral zone between Kuwait and Saudi Arabia.

The Arash field facilities extend in Iranian waters and the neutral zone all the way to the Durra field, which has been in production since 1975 in Kuwait.

According to this demarcation; Approximately 40% of the oil and gas structures in the Arash field are located in Iranian waters.

Years ago, the National Iranian Oil Company drilled an exploratory well (well No. 1 Arash) to determine the existing reserves, and the location of this well is close to the acceptable border line of the country.

In addition, over the past 12 years, Kuwait has identified a new boundary line based on Shell’s seismic survey of the country, which places the entire structure of the Arash field within the Arabian side of the field. However, Iran never accepted these limits.

Restrictions on oil and gas in Iran

Many commentators believe that the many restrictions on oil and gas in Iran are related to the slowdown in the country’s use of its oil and gas resources.

Narsi Ghorban, Secretary of the Environment and Energy Committee of the International Chamber of Commerce in Iran, emphasized this issue. “When we look at the country’s energy sector, we understand that the impact of sanctions is in the hundreds of billions of dollars annually,” he wrote in a letter to Tadawul’s trade publication.

“There may have been small, tech-savvy companies willing to work with Iran for the duration of the sanctions,” he added.

There is no other option but to lift the sanctions if these companies are – for whatever reason – unwilling to do business with Iran. Because of American influence, major corporations may be wary of doing business with Iran.

The relationship between Riyadh and Tehran

The recent dispute between Iran, Saudi Arabia, and Kuwait over the Dorra/Arash field is the first issue that could have a negative impact on the relationship between Tehran and Riyadh.

In recent months, relations between Tehran and Riyadh have followed the path of normalization with Chinese mediation. After a few months of good communication and progress, the Iranian side should deal with this situation carefully and ensure that it does not affect Iran’s relations with Saudi Arabia.

According to some Iranian analysts, the Iranian side should not be pessimistic in this regard. Perhaps the recent improvement in relations between Iran and Saudi Arabia is the reason for the Kuwaiti media’s interest in the issue of the Arush gas field.

It should not take this issue personally nor let other countries take advantage of the situation if they do not want to see Tehran and Riyadh relations improve.

The following infographic, prepared by the specialized energy platform, shows the most important information about the joint Dorra field:

Instead of involving the media, this matter should be dealt with through diplomatic channels, and an agreement that includes common fields is beneficial to the countries of the region. Because investment in some of these fields has slowed down due to ownership issues.

Thus, the agreement between Saudi Arabia and Iran may facilitate investment in shared oil and gas reserves and the settlement of ownership disputes.

Were it not for the imposition of sanctions on Iran, the country would have been able to start developing joint fields with Saudi Arabia by securing the required funding and advanced technology.

In the meantime, we may see an increase in Saudi and Kuwaiti extraction from the Dorra/Arsh field; Given the continuation of sanctions and the lack of commitment of the government of Iranian President Ebrahim Raisi to strengthening production capacity in these areas.

In conclusion, the disputes over the Dorra/Arash field illustrate the difficulties and complexities associated with the regionally shared oil and gas resources. Sanctions, which have slowed investment and technological innovation, are partly to blame for hampering Iran’s ability to harness its oil and gas wealth.

Despite the improvement in relations between Iran and Saudi Arabia; There is more work to be done to settle the dispute over the Dorra/Arsh field; Including deciding on maritime borders and the fair division of shares.

All interested parties may benefit from the cooperation and collaborative development of the Dorra/Arash field; This will also help stabilize energy supplies in the region.

Despite international tensions and divergent interests; Reaching a comprehensive agreement remains a major hurdle.

Unlocking the full potential of the region’s shared oil and gas resources requires continuous communication, diplomatic efforts, and a sincere desire to develop solutions that benefit all parties.

* Dr. Omod Shoukry, senior advisor on foreign policy and energy geopolitics, is the author of “US Energy Diplomacy in the Caspian Basin: Changing Trends Since 2001.”

*This article represents the opinion of the author, and does not necessarily reflect the opinion of the energy platform.